Table of Contents

Rewards & Recognition

Scheme BalmerLawrie& Co. Ltd.

REWARDS AND RECOGNITION SCHEME

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PRIVATE AND CONFIDENTIAL Page 2 of 15

Table of Content

Introduction --------------------------------------------------------------- 3

BalmerLawrie Rewards& Recognition Scheme------------------- 4

Best SBU Award----------------------------------------------------------- 6

Best Unit/ Branch Award------------------------------------------------ 9

Employee of the Year Award------------------------------------------- 12

Young Achiever Award---------------------------------------------------- 14

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Introduction

This Manual contains the details ofthe Rewards&Recognition Schemeof BalmerLawrie& Co. Ltd.,

covering the following with respect to each of the Awards / Recognitions stated under the Scheme:

Objectives

Coverage

Eligibility

Rewards/ Recognition

Nomination and Selection Procedure

Process Flow

Budget

REWARDS AND RECOGNITION SCHEME

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Rewards& Recognition Scheme

Objective

The objectives of Balmer Lawrie Rewards & Recognition Scheme are to:

Recognize sustained and exemplary performance by SBUs/work centers (referred to as

Entities), Teams and individual Employees

Create a more productive work environment

Reinforce a performance driven culture

Improve Employee Engagement

Create & sustain a culture of excellence

Awards & Appreciation The following Awards & Appreciation shall be instituted:

Best SBU Award

Best Unit/Branch Award

Employee of the Year Award

Young Achiever Award

The above list of Awards are applicable from 2014-15. Awards/Appreciation can be added / deleted from this list from time to time depending on their relevance and implementation experience. Rewards Committees & Their Function

At the SBU level

To take decision on the Best Unit / Branch Award within the SBU and recommend individual employees

for other Awards/Appreciation

SBU Head (Chairman)

Any one Corporate Functional Head

SBU HR Resource (Member Secretary)

SBU Finance Resource Any other person (including an employee) co-opted by the Chairman should necessarily be at

the SBU functionalhead level responsibility.

At the Corporate Function Level

To recommend individual employees for other Awards/Appreciation

Head of Corporate Affairs

Head of Finance

Head of IT Senior most Functional Head to act as Chairman

Head of Technical

Head of HR (Member Secretary) One SBU head each from manufacturing and services business.

At the Company level Apex Committee

To take decision on the Best SBU and Employees to be Awarded/Appreciated

C&MD(Chairman)

Director Manufacturing

Director Services

Director HR&CA (Member Secretary)

Director Finance

Any other person (including an employee) co-opted by Chairman to assist the Committee

The Apex Committee besides being the deciding authority on the selection of Best SBU and Employees

for Appreciation shall also be responsible for setting qualitative parameters/indicators of performance

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on a yearly basis and changing/ modifying the Scheme in any manner, from time to time, as considered

appropriate by it. The functions of the Member Secretary shall be:

To get nominations from respective SBUs/Functions with regard to meritorious performance

by Employees for the:

a. Employee of the Year Award

b. Young Achiever Award

To examine the nominations received in terms of their completeness

To take on record all nominations received by the due date

To carry out primary evaluation/analysis of data/information received

To reject such nominationswhich are primafacie either incomplete or invalid with reason(s) for

their rejection

To coordinate with the Apex Committee/CHR Department, as required

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Best SBU Award

Objective

To recognize and reward the best SBU in terms of performance achieved and excellence demonstrated

during the financial year.

Eligibility

All SBUs

Evaluation parameters Each of the SBUs will be judged based on the following specified parameters vis--vis

immediately preceding FY:

Parameters for Best SBU

Parameters Max. Marks Scoring Methodology Remarks

1 Performance Related 20

(a)

Sales / Income (% Growth) (Sales/Income is excluding Excise duty, Custom duty, VAT or any other duty, Tax etc. and also excluding interest and other income)

10

SBU with highest growth % will be assigned 10 marks. Marks for other SBUs will be prorated

Example: Suppose T&T Income growth is 20% which is highest compared to all other SBUs. LS is 18%, G&L is 10% etc. Then T&T marks against Sales/Income(% Growth) = 10 LS =(10/20)*18 = 9, G&L=(10/20)*10 = 5

(b) Profit/PBT (% Growth) 10

SBU with highest PBT growth % will be assigned 10 marks Marks for other SBUs will be prorated

(c) Non Achievement of MoUTargets

(-5)

SBUs which have not achieved the MOU target at Excellent level will be assigned a negative 5 marks.

Negative Growth / Improvement % , shall be awarded 0 (Zero) marks

2 Productivity Related 25

(a) Physical Volume (% growth) 8

SBU with highest growth in physical volume will be assigned 8 marks. Marks of other SBUs will be prorated

For Service SBUs (including ROFS)these marks will be added to 1(a)- Sales/Income(%growth)

(b) Value Added/Employee Cost (%

improvement) 7

SBU with highest improvement in Value Added/Employee Cost will be assigned 7 marks Marks of other SBUs will be prorated

Value Added is Sales Turnover less Expense on bought out items. Employee cost is manpower cost of all Employees including those on Contractual, Outsourced rolls plus payment made to Labour Contractor

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(c) Debtors Factor days (% improvement)

10

SBU with highest improvement in Debtors Factor days will be assigned 10 marks Marks of other SBUs will be prorated

3 Sustainability 5

(a) HSE Audit score 5

SBU with highest average HSE Audit score will be assigned 5 marks Marks of other SBUs will be prorated

Average score =(Sum of score of all Units /Branches of a SBU divided by the total number of such Entities) For Services SBUs: T&T, LS& ROFS the max. mark will be 3 & the remaining 2 marks will be added to 2(b)- Value Added/Employee Cost (% improvement).

4 Overall performance 50

Qualitative performance of the SBU in terms of Process/Technology improvement, Customer orientation & Cost savings etc.

50 Marks on this parameter will be awarded by Rewards& Recognition Committee.

Data/Information on various improvements made/initiatives undertaken to be provided by each SBU

100

Process Flow:

Process Activity Responsibility Time line

Submission of Application

- Prepare Application recording details of

Financial/Physical performance, Productivity

factors, MoU Scores achieved, Average HSE Audit

score and System/Process improvements / Cost

initiatives/ initiatives carried out during the

previous financial year.

- Send to Secretary Apex R&R Committee

SBU Head 15th March

Analysis and Validation

- Collation, Analysis and Validation of data /

information. If required, supplementary data/

information will be sought from the SBU Head.

- SBU Head also may be asked to make a

Presentation to the Apex R&R Committee.

Member Secretary

31stMarch

Assessment - Assessment & awarding of scores by the Apex

Committee.

- Declaration of Award to SBU scoring highest

marks.

Chairman Apex R&R Committee

1st Week of April

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Reward Details

A rolling Trophy and a Citation

Financial contribution for a get together/outing for all employees of the SB